Question: Extend the Binomial Option Pricing Full-Scale Estimation model to determine how fast the binomial option price converges to the price in the Black-Scholes Option

Extend the Binomial Option Pricing – Full-Scale Estimation model to determine how fast the binomial option price converges to the price in the Black-Scholes Option Pricing – Basics model. Reduce the Full-Scale model to a 10 period model and to a 20 period model. Increase the 50 period model to a 100 period model. Then for the same inputs, compare call and put prices of the 10 period, 20 period, 50 period, 100 period, and Black-Scholes models.

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